Rekha Rakesh Jhunjhunwala portfolio company secured a repeat order worth USD 49 million from Kathmandu Upatyaka Khanepani Limited, Stock jumps over 5 per cent today!

The company's shares have delivered an impressive return of around 240 per cent to their shareholders.

VA Tech Wabag operates primarily in the water treatment sector. Its main activities encompass designing, supplying, installing, constructing, and managing the operation of various types of water treatment facilities. These facilities include drinking water treatment plants, wastewater treatment plants, industrial water treatment facilities, and desalination plants. The company has announced the significant order received by the company.

VA Tech Wabag Order Details:

VA TECH WABAG, a prominent Indian water technology multinational, has secured a repeat order worth approximately USD 49 million from Kathmandu Upatyaka Khanepani Limited (KUKL), funded by the Asian Development Bank (ADB). This order involves the Design, Build, and Operate (DBO) responsibility for three Wastewater Treatment Plants (WWTP) in Nepal located at Sallaghari, Kodku, and Dhobighat, aimed at treating around 69 million liters per day (MLD) of wastewater. The project is expected to be completed within twenty-four (24) months, followed by a five-year operation and maintenance (O&M) period.

Once operational, these plants will significantly decrease the discharge of untreated wastewater into the Bagmati, Manohara, and Hanumante rivers, consequently improving water quality and enhancing the overall ecosystem. Additionally, as part of this initiative, Green Fuel (Biogas) will be generated through Activated Sludge Treatment, providing a sustainable source of energy for the operation of the WWTPs. This approach not only reduces greenhouse gas emissions but also optimizes operational costs.

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Ownership Stake

As of March 2024, the promoters' shareholding stood at 19.12 per cent, with Foreign Institutional Investors (FIIs) holding 12.45 per cent and Domestic Institutional Investors (DIIs) holding 5.63 per cent. Renowned investor Rekha Rakesh Jhunjhunwala has maintained a steady ownership of 8.04 per cent since March 2023.

Share Performance and Financial Performance of VA Tech Wabag

Today the company's stock is trading at around Rs 901 per share, with a market capitalisation of Rs 5,598 crore. Additionally, the stock has delivered a multibagger return of around 236 per cent in the past three years.

In FY23, VA Tech Wabag Ltd reported revenue of Rs 2,960 crore, indicating a slight year-on-year decline of 1 per cent from Rs 2,979 crore in the previous year. The operating profit for the fiscal year was Rs 318 crore, a significant increase from Rs 234 crore in the previous year. However, the company's net profit for FY23 stood at Rs 11 crore. As of now, the company is yet to announce its Quarterly Results and full-year performance for FY24.

Investors must keep this Small-Cap multibagger stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.